1- Introduction & PTCL Postn

7/30/2019 1- Introduction & PTCL Postn

1/68

MEMOIR TITLE

Technical and Economic Feasibility Study ofPTCL VoIP based network as a pilot project

Presented by:

Muhammad Nasir khan TM-99/2-06


2/68

Objectives :

Technical and economic feasibility study of PTCL VoIP based network as a pilot projectStudy of economic impact on revenues withCost-benefit analysisStrategy formulation


3/68

Memoir Distribution

This Memoir has been divided into fourchapters:

Chapter1: IntroductionChapter2: Situation AnalysisChapter3: Cost-benefit analysis

Chapter4: Strategy formulation


4/68

Telephony Network Typical Characteristics of Traditional Voice Networking

Bandwidth inefficient; uses 64kbps to transport one call Operating systems and networking protocols are proprietary Multimedia services can not be provided

PBX

PSTNTDM Network

AnalogFAX

AnalogHandset

Voice Mail &Conferencing

Unit

Authentication &Billing System (IN & Online Billing)CO

T1/PRI

2w

CO POP

POPPOP

PBX

8 9

7

4 5

6

3 2

1

# 0 *

8 9

7

4 5

6

3 2

1

# 0 *

8 9

7

4 5

6

3 2

1

# 0 *

8 9

7

4 5

6

3 2

1

# 0 *

8 9

7

4 5

6

3 2

1

# 0 *

8 9

7

4 5

6

3 2

1

# 0 *

8 9

7

4 5

6

3 2

1

# 0

*

8 9

7

4 5

6

3 2

1

# 0

*

8 9

7

4 5

6

3 2

1

# 0

*


5/68

Packet Telephony Packet based voice networks allow flexibility, richer connectivity options

and added features.

DigitalPBX

PacketNetwork

AnalogPBX

Voice enabled

applicationsAnalogFAX

Analog

Handset

VoiceGateway

VoiceGateway

RouterVoice Mail &

ConferencingUnit

VoiceGateway

Authentication &Billing System

CO PSTN POP

IP

PRI

T1

2w

4w

8 9

7

4 5

6

3 2

1

# 0 *

IP PhoneDynamicAddress/Name

Resolution


6/68

What is IP Telephony?

IP Telephony is the transmission of voice signals over packet -switched IP-based networks. There are two main types:

Internet Telephony: using the public Internet; Voice over IPalso known as IP telephony: using private,

managed IP-based networks, in addition to the Public Internet.Services and applications:

IP telephony: voice service built on top of datacommunications

Mix of real-time and store-and-forward services!


7/68

Voice over IP Technology: an IP gateway is sited at the edge of thenetwork between the PSTN and the data network

Conversion of analog voice signal to digitalformat and compression/translation of the signalinto IP packets for transmission, the process isreversed at the receiving end

Services: voice communicationsInfrastructure: IP- network (Intranet) Objective: cost reduction, integration of

terminals and servicesMarket segment: focus residential and businesscustomers

Relevant ITU-T standards include H.323, H.324, H248,T.120 etc.


8/68

Stages of evolution PC-to-PC (since 1994)

Connects multimedia PC users, simultaneously onlineCheap but inconvenient and low quality

PC-to-Phone (since 1996)

PC users make domestic and intl calls via gateway Increasingly services arefree (e.g., Dialpad.com)

Phone-to-Phone (since 1997) Accounting rate bypassLow-cost market entry (e.g., using pre-paid card)

Voice/Web integration (since 1998)Calls to website/call centres and freephone numbers

Enhanced voice services (e.g., integrated messaging)


9/68

1. PC-to-PC over IP

Needs similarly equipped Internet users (e.g., IP telephonysoftware, multimedia PC etc), both logged-on simultaneously

Main applications: avoidance of usage-based telephone charges,chat-rooms, company LANsPotential Market: < 50 million users

Internet

Phone Gateway Computer Phone Gateway Computer


10/68

2. PC to phone over

IP

Internet users with multimedia PC able to call any phone or faxuser (not, at present, vice versa)

Main motivation: Reduced telephone charges, free calls to US,Canada, Hongkong etcService providers include Net2Phone, DialPad etcMarket potential: Sending, >250 million Web users, receiving

>1.3 billion telephone/mobile users

Phone GatewayComputer

TelephonePublic Switch

Internet

Desktop PC Fax


11/68

3. Phone to phone Mobile, over IP

Any phone/fax/mobilephone user to any other

Main motivation: Reduced call charges, accounting rate bypass,market entry for non-facilities-based carriers (e.g., via pre-paidcards)Market potential: >1.3 billion phone/fax/mobiles

Telephone TelephonePublic Switch

Internet



Fax Fax


12/68

4. PC to website/

Call centre,over IP

Internet users with multimedia PC browse Website and choosevoice/video connection option

Main motivation: Service provider can interact directly withpotential clients, via voice or video, for instance for telemarketing,freephone accessMarket potential: >250 million Internet users

Web Server

Public Switch

Internet

Desktop PC Phone Gateway Computer atService Provider

Telephone


13/68

Technical Challenges Packet loss:

typical performance question in

packet-switched networkdue to congestion in routers (queuing!)critical for voice communicationsseveral techniques to reduce packet loss andto decrease the effects of packet losses

Packet delay (incl. Jitter/wander):critical for voice communications

(long delay: echo, half-duplex mode)Sources of delay in IP-networks:

codec ( 0 - 40 ms) serialisation delay ( < 0.1 ms) queuing delay (routers/gateways) propagation delay (critical for satellites links)

Solutions: priority mechanisms (RSVP, buffers, )


14/68

Constraints to IP Telephony Quality of Service

Getting better, transition to private, managed networksBandwidth

Getting better, particularly on Trans Atlantic and TransPacific routesBandwidth shortage still a problem in developing countriesespecially if gateway to IP is asymmetric

Regulatory ProhibitionMore than 70% of International traffic flows between marketswhere IP telephony is already liberalizedMany more regulators are liberalizing some form of IPtelephony


15/68

Advantages of IP Telephony

Packet based voice networks allow for: Bandwidth Scalability Application portability and flexibility Sharing of infrastructure for high speed and

enhanced data networking Bandwidth efficiency

Low-cost domestic & international long distance

Introduction to advanced IP communication and value addedservices for future growth


16/68

Implications of IP Telephony

For Consumers, IP Telephony offers cheaper internationaltelephone calls and integrated messagingFor Internet Service Providers , voice is a potentialapplication to make their sites more attractiveFor incumbent Public Telecommunication Operators, IPTelephony will accelerate rebalancing between internationaland local calls. It is a threat, but also an opportunity.For new market entrants, IP Telephony offers low-cost, low-risk market accessFor Regulators, IP Telephony poses many difficult questions!


17/68

VoIP equipment classesVoIP Gateways:

These devices convert analog and digital voice traffic into IPpackets and vice versa. These handle multiple T1/E1 and userside signaling.Remote Access Servers (RAS):

Are for dial-in users, adding VoIP capabilities to RAS allow it todetect if an incoming call is voice or data.

Internetworking Gateways:Interconnection between VoIP services and PSTN services is

mandatory. They must support carrier class signaling includingSS7 in addition to packet switching.

Customer Premises Equipment (CPE):VoIP gateways, IP based telephones and multimedia PCs are

new additions to the CPE.


18/68

Conferencing Standards

-Q.931Q.931Q.931Q.931Signaling

H.223H.225.0H.221H.221H.221Multiplexing

H.245H.245H.242,H.230

H.242H.230,H.242

Control

T.120T.120T.120T.120T.120Data Sharing

8, 5.3/6.3

H.261, H.263

64, 48-64, 16, 8,5.3/6.3

H.261, H.263

64, 48-64, 16

H.261, H.263

64, 48-64, 16

H.261, H.263

64, 48-64

H.261

Audio Rateskbps

Video Codec

1996

G.723.1,G.729

1996/98

G.711, G.722,G.723.1, G.728,G.729

1995

G.711,G.712,G.728

1995

G.711,G.722,G.728

1990

G.711,G.712,G.728

Year

AudioCodec

H.324H.323 V1/V2H.322H.321H.320Conf. Std.

POTs LAN PSTN ATM ISDN Network


19/68

VoIP Protocol Stack

Physical Copper / Fiber

Link Ethernet

Network IP

Transport TCP, RTP/UDP, RTCP

Session H.323, MGCP, SIP

Presentation G.711, G.723.1

Application TAPI


20/68

ITU H.323 / VoIPAn umbrella of recommendations for multimedia

conferencing procedures over packet networks with nodelivery guarantee Mandatory elements

H.225.0 Call signaling, packet format, synchronization (RAS/Q.931)H.245 Capability exchange, channel negotiation, flow control RTP/RTCP (Real Time Protocol / Real Time Control Protocol) Transport

layer operations such as logical framing, sequence numbering,timestamping, payload distinction, source identification, performance andstatus reporting.

G.711 Voice codecOptional elements

G.723.1/ G.729A Voice codecs H.235 Security and EncryptionH.246 Terminal interoperability through gateways

H.450Supplementary services

T.120 Data collaboration


21/68

Network and Physical Layers

ITU H.323 / VoIP

Physical Copper / Fiber

Link Ethernet

Network IP

Transport TCP, RTP/UDP, RTCP

Session H.323, MGCP, SIP

Presentation G.711, G.723.1

Application TAPI

UDP

RTP

G.723.1G.711

RTCP

Audio

TCP

H.225.0RAS

&Q.931 CallSignaling

TCP

H.245

ControlSignaling

Call Manager / Agent


22/68

H.323 PROCOTOLS

Multimedia over LANs

Provides component description, signaling procedures, call control,system control, audio / video codecs, data protocols

Video Audio Control and Management Data

H.261,H.263

G.711,

G.722,G.723.1,G.728,G.729

R T C P

H.225.0RAS

H.225.0Signaling

H.245Control T.124

T.125

T.123

X.224 Class 0

TCP

Network (IP)

Data link (IEEE 802.3)

RTP

UDP


23/68

ITU H.323 / VoIP Components

Four types of components are defined

Terminals Endpoint device used for real time bi-directional audio

communications

Gateways Connect two dissimilar network endpointsGatekeepers

Central control point for H.323 networkPerforms address translation, authorization, routing,

bandwidth management, and call accountingNot a mandatory component of H.323 networks

Multipoint Control Units Provides for conferencing between multiple H.323

terminals and gateways


24/68

Projected IP Telephony market IDC forecasts that Web Talkrevenues will reach US$16.5 bn by2004 with135 billion mins of trafficDeltaThree estimates thatIP Telephony will generate16 billion mins of intl traffic in

2000IP Telephony as % of allintl calls in 2004

Tarifica forecast 40%Analysys forecast 25%

In developing countries, themajority of IP Telephony calls areincoming

Source: IDC.

0.208

16.5

2000 2004

Web Talk

revenues,US$bn


25/68

Bitrate growth in data networks is higher

Source: ICN M CM, ITU, ISOC

Total average bitrate

Year1985

1

Gbit/s

1990 1995 2000 2005 2010 2015 2020

Telephone total

106

103

10-3

10-6

Internet

The internet becomes a second universal network besidesthe voice network.


26/68

VoIP Vs PSTN charges

.27.21Philippines

.17.079Australia,France,Ireland

.32.25China

.10.079UK

.05.039US night

$7.95.99Monthly charge

AT&TNet2Phone

Source: Interactive Week, June 5, 2000


27/68

VoIP Telephony Restrictions

ZimbabweSouth AfricaKenyaCyprus

YemenSlovakiaJordanCuba

VietnamPhilippinesIsraelBulgaria

VenezuelaPanamaIndiaBotswana

UgandaPakistanGhanaBahrain

TurkeyNepalEstoniaArgentina

ThailandMexicoEgyptAlbania

Source: C. McTaggart & T. Kelly, ITU,IPTEL/03, My 29, 2000, p. 22


28/68

CASE STUDY:Chinas telecom market profile Population 1,255M(99)GDP per capita US$ 734(98)Tele density 6.96(98)

Internet hosts per 10,000 people 0.14(98)Users per 10,000 people 16.7(98)No. of ISPs 200(98)PCs per 100 people 0.89(98)

Int. capacity 351Mbps(1/00)


29/68

Promoting the InternetGovernment cut twice in 1999 the cost of IP access

switching stations rental: from 600 to 280 yuan p/monthnational LD digital lines:from 431,000 to 80,000 yuan p/monthDigital data line fees: reduced by 45%2Mbps national connection to an international digital lineUS$26,579 p/month.Europe99:US$2.5 billion investment in broadband during 2000US$24 billion by 2005:

transmission systems=US$15billion access networks= US$6billion data communication hardware=US$3billion


30/68

Chinas IP Tel market

MII licensed 3 operators in April 1999 for a 6 month trial in 26citiesThese licenses ended a de facto long distance and legalinternational monopoly of China Telecom

Four IP telephony licenses granted in March 2000China TelecomChina UnicomJitong Communications

China NetcomForthcoming IP Tel license to China Mobile


31/68

China Telecom IP Tel First to launch services in April 1999

initial roll out in 25 citiesUS$2 million network(100E1s)Setup time=60 daysIP Telephony cards:on;y one sales counter and very limitednumber of IP cardsOver 500 people per day sign up after the announcement


32/68

China Unicom

US$ 241 million invested in 12 cities

Between June and November, Unicom acquired nearly 700,000customers for its IP Tel servicesThe network reached full capacity in only 80 days instead of 180days initially

By Nov. 99 Unicom was generating several million minutes inmonthly China/US traffic and internet calls accounted for 50% of its IP business.


33/68

Jitong Communications Sold more than 50,000 IP Tel cards in just five cities

From June to August 1999 the total revenue from sales of IPphone cards stood at US$ 35 million


34/68

China Netcom IP Tel trials in 15 cities since October 1999

20 Gbps fiber optic network backboneReady for operation by late 2000

Linking corporate and government buildings in major citiesdirectly to the IP backbone


35/68

MIIs IP Telephony tariffs

Services Telephony (non- IP) tariffs

IP telephony tariffs

Domestic longdistance

0.9-1.1 Rmb/min 0.3 Rmb/min(US$.04)

International 12-15 Rmb/min 4.8 Rmb/min(US$.58)


36/68

Pakistans telecom market profile

Population 131.6M(99)GDP per capita US$ 490(98)Tele density 2.2(98)Internet hosts per 10,000 people 0.22(98)

Users per 10,000 people 4.35(98)No. of ISPs 41(99)PCs per 100 people 0.39(98)Int. capacity 153Mbps(99)


37/68

TIPHON/ETSI is globally accepted as leading body for internetgateway standardization. (www.etsi.org/tiphon)

ITU-T SG 16 concentrates on Multimedia Terminals andSecurity; develops IP Telephony Standard H.323; TIPHONprovides input for this group. (www.itu.org)InternationalTelecomm. Union

IETF investigates interworking between Internet and IntelligentNetworks. TIPHON influences via member organizations. (www.ietf.org)

Internet EngineeringTask Force

TIPHON


38/68

Summary for International services Total no. of intl PSTN circuits 5944

Total no. of FDM ccts on Satellite 210Total no. of IDR (PSTN) ccts on Sat. 4612Total no. of intl ccts on SMC Ana 220

Dig 547Total no of intl ccts on M/W and C/C 221Total bandwidth of IPL circuits 152992.6 Kbps Digitalization Percentage

Transmission system 91.97%Switching system 91.56 %Total no. of destinations Traffic percentageDirect countries 39 92.17 %Transit countries 168 07.83 %


39/68

Percentage increase in Intl revenues

05

10152025

30

1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-99

Series2

Series1


40/68

Revenue breakdown for the year 1999-2000

Revenue(M)9,674

938 8,441 4,783

856 4,666

85 6

861 20,573

304 51,187

40.190.59

0.160.011.68Leased lines & VAS

Local calls Addl rev by time metering

NWD callsLine rent

Installation feeForeign outgoing

Internet & Data linesInstallation fee

Foreign incomingTelex & Telegraph

Grand Total

% age of total18.891.8316.499.341.679.11


41/68

Revenue breakdown for the year 1999-2000

Revenue(M)

Foreignoutgoing

9%

Foreignincoming

40%

Local calls19%

NWD calls16%

Line rent9%

INTERNATIONAL TOTAL INWARD TRAFFIC GROWTH


42/68

INTERNATIONAL TOTAL INWARD TRAFFIC GROWTH

0

10

20

3040

50

60

70

80

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

T r a

f f i c i n m

i l l i o n m

i n u

t e s

1997-98 1998-99 1999-00

18 20 24 19 12 18 25 28 22 28 12 31

17 16 12 21 18 13 18 13 21 2 25 15

Yearly Growth: 98/99 VS 97/98= 15.89% 99/00 VS 98/99= 21.49%

Circuits (Jun 98)= 5128

Circuits (Jun 99) = 5380 Circuits (Jun 00)= 6737


43/68

Total Inward Traffic in Million Minutes

557.84

646.48

785.39

0100

200

300

400

500

600

700

800

900

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 15.89% 21.49%

INTERNATIONAL TOTAL OUTWARD TRAFFIC GROWTH


44/68

INTERNATIONAL TOTAL OUTWARD TRAFFIC GROWTH

01

2

3

45

6

7

89


T r a

f f i c i n m

i l l i o n m

i n u

t e s

1997-98 1998-99 1999-00

6 4 1 2 1 -2 6 4 0 0 2 -0.2

5 9 6 -1 3 3 6 2 4 5 5 3

Yearl Growth: 98/99 VS 97/98= 4.04% 99/00 VS 98/99= 1.98%


45/68

Total Outward Traffic in Million Minutes

84.07

87.46

89.2

81

82

83

84

85

86

87

88

8990

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 4.04% 1.98%

INTERNATIONAL INWARD TRAFFIC FROM USA


46/68

0

5

10

15

20

25

30


T r a

f f i c i n m i l l i o n m

i n u t e s

97-98 98-99 99-00

INTERNATIONAL INWARD TRAFFIC FROM USA

29 31 66 36 -1 24 34 53 39 60 48 39

3 -30 -18 17 23 16 28 15 23 4 13 22

Yearly Growth: 98/99 VS 97/98= 7.68 %, 99/00 VS 98/99=37.14 %





47/68

Total Inward Traffic from USA in Million Minutes

185.6199.87

274.1

0

50

100

150

200

250

300

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 7.68% 37.14%

INTERNATIONAL OUTWARD TRAFFIC TO USA


48/68

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,0001,600,000


T r a

f f i c i n m

i n u t e s

97-98 98-99 99-00

INTERNATIONAL OUTWARD TRAFFIC TO USA

-1 -6 -2 -3 -4 5 2 -24 -14 -3 -12 -14

-18 -18 -22 -30 -28 -22 -21 -22 -18 -23 -15 -9

Yearly Growth: 98/99 VS 97/98= -19 %, 99/00 VS 98/99= -12.17 %


49/68

Total Outward Traffic to USA in Million Minutes

15.63

12.6511.11

0

5

10

15

20

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth - 19.00% -12.17%


50/68

Total Inward Traffic from UK in Million Minutes

80.34

115.16

171.77

0

50

100

150

200

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 43.33% 49.16%


51/68

Total Outward Traffic to UK in Million Minutes

14.7216.81

17.96

0

5

10

15

20

25

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 14.23% 6.84%


52/68

Total Inward Traffic from SAUDI ARABIA in Million Minutes

81.54 84.65

102.745

0

20

40

60

80

100

120

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 3.81% 21.38%


53/68

Total Outward Traffic to SAUDI ARABIAin Million Minutes

7.097.84

9.07

0

2

4

6

8

10

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 10.58% 15.67%


54/68

Total Inward Traffic from ETISALAT UAE in Million Minutes

77.36

88.03

99.532

0

20

40

60

80

100

120

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 13.79% 13.07%


55/68

Total Outward Traffic to ETISALAT UAE in Million Minutes

9.91

11.48 11.651

0

2

4

6

8

10

12

14

T r a

f f i c

i n M i l l i o n

M i n u t e s

1997-98 1998-99 1999-00

%age Growth 15.84% 1.49%


56/68

Situation analysis For the year 1999-2000: PTCL total outgoing traffic is 89.2

million minutes, while its incoming traffic is 785.39 mm.There is 49.79mm (55.81%) outgoing traffic for the fourdestinations; USA, UK, Saudi Arabia and UAE

The incoming traffic from these four countries is 648.14 mm(82.52%).


57/68

The % age change in the outgoing traffic is showing a negativetrend for the following destinations:

1997-98 1998-99 1999-2000 TOTAL 84.07 Mm 87.46 Mm (4.04%) 89.2 Mm (1.98%)USA 15.63 12.65 (-19.00%) 11.11 (-12.17%)

UK 14.72 16.81 (16.81%) 17.96 (6.84%)UAE 9.91 11.48 (15.84%) 11.65 (1.49%)

f f h d l


58/68

Important factors for the declininginternational traffic and revenues

RefilingCall-back servicesLeaky PABXsIllegal VSAT linksInternet telephony

l


59/68

SWOT Analysis

Strengths MonopolyFinancial stabilityOptical fiber based core network

Own access network infrastructureLarge customer baseSkilled technical manpower


60/68

Weaknesses

Bearucratic structureLong decision makingNo MISUnavailability of cost-based tariff

Poor customer careLack of corporate culturePoor marketing strategies


61/68

Opportunities Large untapped markets

Value added servicesVoIPWLL and xDSL in access networkNAP

ATM based national backboneMISBetter utilization of HRM and available infrastructureImproved marketing strategies and customer care


62/68

Threats DeregulationCompetitionDecreasing international revenuesFCC benchmarkingVoIPTraffic migration to internet/cellularLow GDPInflation


63/68

International accounting rates Pakistan is among the top ten net settlement surplus countries.Despite the growth in international traffic, reducing thesettlement rate from 90 cents to 23 cents mean eroding therevenues to 1/4 of the current level.

According to the ruling, Pakistan will have to implement abenchmark settlement rate of US$ 0.23/minute by 1st January2002 with the US carriers.

PTCL has signed agreements with US carriers for a settlementrate of US$ 0.90 per minute unit by June 1998. This implies thatpost June 1998, PTCL will have to reduce its accounting rate by

approximately 28% per annum in order to meet the decline.

Proposed VoIP network for Pakistan


64/68

Proposed VoIP network for Pakistan

ATM Switch

ATM Switch ATM Switch

Lahore

Lahore

Islamabad

Satellite dish

Satellite dishVoIP Gateway

VoIP Gateway withCall agent

VoIP Gateway

PRIs

PRIs

PRIs

ATMBackbone

Gatekeeper withIVR and call accounting system

Transit exchange

Local exchange

PTCL Concerns


65/68

PTCL ConcernsPTCL have made a significant investment in traditional TDMswitching, to remain successful we should preserve the existingnetworks, while migrating to the new networks. We mustinterface PSTN with the packet-based networks of the future forthe delivery of features via packet-based data networkinfrastructures

Impact on PTCL revenue due to substitutionDuplication of investment for providing parallel VoIP networkThe IP protocols are not yet uniformly developed. End to endconnectivity requires proprietary equipmentThe quality of service can not be guaranteed due to absence of international standardsThe bilateral TAR settlement with incumbent telcos may comeunder pressure

Strategy


66/68

gyIP telephony is legal in USA and most of the developed countriesso it is very difficult to stop it.

China has also allowed VoIPPTCL should form a subsidiary for providing VoIP services.Presently, PTCL outgoing traffic is 89.2 million minutes , out of which 49.79 million minutes traffic 55.8% of the total is for the

following four destinations: Destination Outgoing traffic PercentageUK 17.96 million minutes 20.13%UAE 11.65 million minutes 13.06%SA 9.07 million minutes 10.16%USA 11.11 million minutes 12.45%

As there is a declining trend in the outgoing traffic flow, weshould adopt a strategy to safeguard our investments in thetelecom infrastructure and increase the declining revenues.

Strategy


67/68

StrategyIn the first phase PTCL should start VoIP service as a pilot project for the four destinations i.e. UK, UAE, SA AND USA in

the three major cities of the country (i.e. Islamabad, Lahore andKarachi) by installing VoIP gateways with SS7 capability with thetransit exchanges there.VoIP service should be marketed via the pre-paid cards by

introducing international pre-paid cards.Currently majority of the calls are incoming, by introducing lowrate outgoing calls the volume of the outgoing traffic will increaseso the declining revenues can be increased substantially.

A comparison of the existing rates and the new VoIP rates are:Country Existing Telephony rate Proposed VoIP rate

UK Rs. 54 per minute Rs. 10 per minuteUAE Rs. 42 per minute Rs. 10 per minute

SA Rs. 50 per minute Rs. 10 per minute

Strategy


68/68

gyTo invite quotations for the best possible international voiceterminating and voice carrying rates from/to USA ,UK and other

countriesTo make alliance with a Tier1 companyTo make arrangements to start the service by 1st of July 2001,and from the feedback of the service, it can be extended fromother cities of the country to other countries in the second phaseby expanding VoIP networkIn the third phase, start VoIP service within Pakistan as aneconomy service between major cities on reduced rates.To offer PTCL international prepaid cards in USA, UK, Middle

East and Far East for expatriates and Pakistanis travellingabroad.

1- Introduction & PTCL Postn

Documents

Transcript of 1- Introduction & PTCL Postn